Mea culpa -- I was wrong on this stock

Back on the 16th of February I wrote a positive article on the company Progressive Gaming International Corp. (NASDAQ: PGIC). My BloggingStocks article explained why I liked the stock on my website at $6.65 back in October, and in mid-February it was trading at $9.32. Rather than suggest to readers to sell the shares and capture the 40%+ profit, I suggested they add to their positions as the best lay ahead for the company. I was wrong, plain and simple.

As a stock picker, I do my homework and research as much as humanly possible. I check and double -- even triple -- check sources, analysts and portfolio managers, but sometimes, we (I) just get it wrong. We are still dependent on human beings acting on plans and forecasts and sometimes it just does not work out according to plan. Yesterday PGIC closed at $4.20, down $.73 on huge volume as the company reported that "suspicious trading activity" took place on its stock on March 23rd. Also, the company badly missed its fourth quarter estimates for revenues and earnings and forward estimates were reduced for 2007.

Progressive Gaming has some extremely valuable technology for the gaming and casino industry. Its technology has been placed in several bell-weather casinos both in the United States and internationally. PGIC does have high barriers to entry, but the company has not yet fulfilled its mission of consistency with revenues and earnings. It might do so and some portfolio managers I know are taking a serious look at this company as a turnaround play. The problem is turnarounds take time and patience. The thesis of my February recommendation was based on strong and solidifying fundamentals, with momentum entering 2007. That has not materialized.

Progressive Gaming has a lot of value due to patents granted, serious customer relationships and valuable technology, but the year 2007 looks very difficult and challenging for this company. I think, barring a takeover play, the shares will be quiet money for the year.

Mea culpa, I was wrong and apologize for this suggestion...

Georges Yared is the author "Stop Losing Money Today" and "Baby Boomer Investing." Please visit www.georgesyared.com